The Impact of Digitization on Business Operations

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    The Smartphone as the Incumbent “Thing” among the Internet of Things
    ( 2019-01-08) MacCrory, Frank ; Katsamakas, Evangelos
    The smartphone has been the ubiquitous computing platform in the past decade. However, emerging consumer Internet of Things (IoT) technology trends, such as smartwatches and smart speakers, promise the establishment of new ubiquitous platforms. We model two competing horizontally-differentiated platforms that each offer a smartphone and another smart device. This market diverges markedly from standard mixed bundling results when devices from the same vendor have super-additive utility. We show that the degree of a smart device’s differentiation (relative to the smartphone) is the prime factor determining if it is profitable to deepen integration between a smart device with the incumbent smartphone platform. We provide managerial insights for technology strategy.
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    Operational Impact of mHealth Adoption in Clinical Practice
    ( 2019-01-08) Rajan, Balaraman ; Agnihothri, Saligrama
    Chronic conditions place a high cost burden on the healthcare system and deplete the quality of life for millions of Americans. There is significant medical literature that shows that continuous monitoring of patient health at home with the addition of provider support, improves patient health. Digital innovations such as mHealth technology can be used to provide efficient, effective, and patient centered healthcare. However, implementing mHealth technology can significantly change the composition of clinical staff and patient flow. In this paper, we evaluate the trade-offs of implementing mHealth technology in a clinical practice.
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    Does Telemedicine Reduce ED Congestion? Evidence from New York State
    ( 2019-01-08) Sun, Shujing ; Lu, Susan (Feng) ; Rui, Huaxia
    Overcrowding in emergency departments (EDs) is a common yet nagging problem. It is not only costly for hospitals but also compromises care quality and patient experience. Hence, finding effective ways to improve ED efficiency is of great importance. Using a large dataset of New York State, we investigate the role of telemedicine in enhancing ED efficiency. We show that on average, ED telemedicine adoption significantly reduces patients' length of stay by 15.3% and waiting time by 9.6%. Such an effect is not a byproduct of other widely adopted health IT applications. Interestingly, the effect of telemedicine is larger for less severe patients or when the ED is at a higher occupancy level. Also, we show that the efficiency improvement does not come at the expense of care quality or patient cost. Therefore, our research points to telemedicine as a potential cost-efficient solution to alleviate ED overcrowding.
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    Racial Discrimination in Social Media Customer Service: Evidence from a Popular Microblogging Platform
    ( 2019-01-08) Gunarathne, Priyanga ; Rui, Huaxia ; Seidmann, Abraham
    The concept of racial inequality has existed from the early days of service provision, with evidence dating back to ancient civilizations. While the emergence of the Internet and social media has drastically transformed almost every aspect of everyday life, including the intrinsic values of social relationships, the impact of racial disparities on receiving services on online platforms is not so evident. Although many consumer brands provide customer service on social media today, little is known regarding the prevalence and magnitude of racial discrimination in the context of social media customer service. Thus, in this study, we examine the existence and the extent of racial discrimination against African-Americans in social media customer service. We analyzed all complaints to seven major U.S. airlines on Twitter for a period of nine months. Interestingly, our empirical analysis finds that African-American customers are less likely to receive brand responses to their complaints on social media. To the best of our knowledge, this is the first study to empirically analyze the racial discrimination phenomenon in the context of social media customer service.
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    Aggregation Bias
    ( 2019-01-08) Nakkas, Alper ; Chen, Kay Yut ; Zhang, Jie
    We propose an axiomatic approach to a decision maker’s information aggregation problem. This axiomatic analysis provides a positive model of the decision maker’s evidence assessment process, wherein submitted credible evidence is aggregated into an overall assessment that is responsive to the individual assessments provided. We show that the axiomatic approach produces a two-parameter family of functions and the parameters of the aggregation function have natural interpretations as the decision maker’s bias against the information provider’s report and the breadth of the interpretation of the decision maker’s perspective. We consider two different applications and provide empirical evidence that the decision makers use this form of information aggregation in practice.